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HomeMy WebLinkAbout2026-06-12 Climate Action and Sustainability and Utilities Advisory Commission Joint Special Meeting Summary MinutesCLIMATE ACTION & SUSTAINABILITY COMMITTEE AND UTILITIES ADVISORY COMMISSION SUMMARY MINUTES Page 1 of 12 Special Meeting June 12, 2026 The Climate Action and Sustainability Committee and the Utilities Advisory Commission of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 2:00 p.m. Present In-Person: Climate Action and Sustainability Committee: Veenker (Chair), Burt, Lu Utilities Advisory Commission: Croft, Gupta, Metz, Phillips (Vice Chair), Mauter (Chair), Scharff, Tucher Absent: None Call to Order Mayor Veenker called the joint meeting of the Climate Action and Sustainability Committee (CASC) and the Utilities Advisory Commission (UAC) to order. The Clerk called the roll and noted that all members of each body were present. Mayor Veenker explained that Item 1 would be considered jointly by the CASC and the UAC, after which the UAC would be excused and the CASC would reconvene to consider Item 2. Public Comments: None Verbal Report A. Staff Comments Director of Public Works Brad Eggleston reported that the City was accepted into the Los Angeles Cleantech Incubator City Climate Innovation Challenge to support development of a curbside EV charging pilot program. Staff plans to return to the CASC in the second half of 2026 with a preliminary program design for feedback. The grand opening of the Bryant Street Community Center was highlighted, which was included in the City's nonresidential HVAC pilot program that replaced aging gas- powered equipment with all-electric systems. It was noted that the program's 13 projects have largely been completed or are under construction and that lessons learned are informing development of the Advanced HVAC Pilot Program. Several new members of the Climate Action Working Group were announced: David Coale of Carbon Free Palo Alto, Hilary Glann and Andrea Gara of 350 Silicon Valley Palo Alto Team, and Youth Climate Advisory Board Chair Aiden Miao. Utilities Director Alan Kurotori reported that the extension of the California Air Resources Board's Cap- and-Invest Program is expected to increase City allocations and revenues by approximately 193 percent between 2027 and 2030, providing additional resources for affordability programs, climate action initiatives, and customer rebates. Director Kurotori announced an induction cooktop rebate program and upcoming outreach at the Chili Cookoff to demonstrate induction cooking technology to residents. SUMMARY MINUTES Page 2 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 B. Committee Member Comments and Announcements Mayor Veenker reported that the Northern California Power Agency appointed Tony Zimmer as General Manager following a nationwide recruitment process. It was noted that Zimmer has more than 25 years of experience with the agency and plans to visit Palo Alto in the future. Agenda Items 1. Feedback on Strategies for Community-Wide Electrification to Model for Future City Council Consideration; CEQA Status - Not a Project Assistant City Manager Kiely Nosé stated that the discussion was part of the City's ongoing strategic planning efforts to achieve its climate goals while balancing affordability. It was explained that the joint meeting was intended to provide feedback on the scope of an upcoming modeling effort that will inform future Council consideration of electrification strategies, utility impacts, and emissions reductions. Assistant Director for Climate Action Jonathan Abendschein explained that staff plans to evaluate the costs of 6 community-wide electrification strategies to help the City Council consider potential timelines and approaches for achieving the City's 80 x 30 emissions reduction goal. Staff was seeking feedback on the range of strategies to be modeled and expects to return in late 2026 or early 2027 with results, utility impact analysis, and recommendations for future Council consideration. The City's previous modeling efforts have improved staff's understanding of community-wide electrification and positioned the City to evaluate actionable pathways toward its climate goals. Assistant Director Abendschein summarized a 2020 study conducted with AECOM that identified a pathway to a 72 percent emissions reduction and informed subsequent research priorities, followed by 2024 studies conducted by E3 and Willdan that evaluated EV charging needs, electrification opportunities in the multifamily and nonresidential sectors, and development of a community-wide funding model. Staff presented illustrative 80 x 30 scenarios to the CASC and City Council in 2025 and 2026 to better understand the financial implications of community-wide electrification. Assistant Director Abendschein highlighted progress toward greenhouse gas reduction goals through reduced emissions from the electric portfolio, increased EV adoption, and reduced vehicle miles traveled, while emphasizing that building electrification remains the largest remaining challenge and an area where the City can have significant local influence. It was stated that the current effort is intended to build on previous studies and pilot programs to develop a long-term electrification strategy. Assistant Director Abendschein reported that prior studies and pilot programs found that voluntary programs can accelerate electrification but are unlikely to achieve community-wide goals without complementary regulatory measures. Large-scale rebate programs would require funding beyond the City's current resources, although previous modeling found electrification to provide a net long-term community benefit despite significant upfront costs and uneven distribution of benefits. Assistant Director Abendschein stated that the 2026 modeling effort will focus on the cost impacts to individual community members and the City to better inform future policy decisions. Key updates to the 2024 analysis include reduced availability of external funding, increased grid modernization costs, and uncertainty regarding California's Advanced Clean Cars II regulations. Evolving EV adoption forecasts may increase the importance of building electrification strategies, while more flexible infrastructure planning approaches could help manage grid investment costs. Each electrification strategy consists of a package of programs and local regulations. Staff plans to estimate adoption rates and associated costs under each strategy while evaluating potential impacts of carbon pricing, affordability subsidies, and SUMMARY MINUTES Page 3 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 electric rate design options. Assistant Director Abendschein reviewed 6 proposed strategies ranging from a baseline scenario with no additional local action to increasingly comprehensive electrification approaches, including a strategy that incorporates early equipment retirement to accelerate progress toward the City's 80 x 30 emissions reduction goal. Staff intends to evaluate the costs, impacts, and funding needs associated with each approach. Assistant Director Abendschein explained that staff plans to estimate adoption rates for each of the 6 strategies and identify the timeline for achieving the City's 80 percent emissions reduction goal under each scenario. Those projections will be incorporated into the updated model to estimate funding needs, potential revenue sources, rate impacts, and effects on community member expenses. Additional analysis will evaluate funding approaches, carbon pricing, gas transition policies, and electric rate design. Assistant Director Abendschein reviewed potential funding sources and noted that different revenue options have varying impacts on utility bills and energy affordability. While some funding mechanisms could increase utility costs, associated savings from electrification may offset those impacts over time. Restricted revenues, including public benefits funds, Cap-and-Invest revenues, and Low Carbon Fuel Standard revenues, have supported climate programs but are not expected to fully fund the most ambitious electrification strategies. Assistant Director Abendschein discussed potential carbon pricing policies and their interaction with the City's gas transition. Declining natural gas usage could increase costs for remaining gas customers because a substantial portion of gas utility costs are fixed, raising questions about whether subsidies or other funding sources may be needed to mitigate customer impacts. Staff plans to evaluate baseline scenarios, subsidy approaches, and potential carbon pricing options through the modeling effort. Assistant Director Abendschein summarized feedback from the Climate Action Working Group, which generally supported the proposed range of electrification strategies. Discussion topics included carbon pricing, gas system decommissioning, potential changes to Air District regulations, affordability considerations, and funding sources that do not affect utility bills. Additional comments encouraged continued progress on related efforts, including local regulations and financing programs, while the analysis is underway. Assistant Director Abendschein concluded by requesting feedback from the CASC and UAC regarding whether the 6 proposed strategies provide an appropriate range of policy options for evaluating utility impacts and informing future recommendations to the City Council on community- wide electrification. Commissioner Gupta sought clarification regarding whether Strategy 5 focuses on end-of-life replacement of gas appliances or decommissioning of the gas system. Assistant Director Abendschein clarified that Strategy 5 is intended to maximize electrification at the end of a gas appliance's useful life, although some regulations could result in limited early equipment replacement. Vice Chair Phillips sought clarification regarding the reference to replacing 3 energy systems with 1. Assistant Director Abendschein explained that the 3 systems are electricity, natural gas, and gasoline. Commissioner Croft asked how transportation-related emissions are reflected in the proposed electrification strategies and whether EV charging is incorporated into each strategy. Assistant Director Abendschein explained that the modeling includes transportation and buildings, with the City having greater influence over building electrification, and confirmed that EV charging is incorporated into each strategy. SUMMARY MINUTES Page 4 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 Commissioner Metz asked how potential City regulations would relate to anticipated Bay Area Air Quality Management District requirements. Assistant Director Abendschein explained that local regulations are intended to complement regional requirements and highlighted Building Emissions Savings Ordinances (BESO) and Building Performance Standards (BPS) as promising approaches to advance electrification in residential and commercial buildings. Commissioner Metz then asked whether conservation measures would be addressed separately from appliance-related requirements; Assistant Director Abendschein confirmed that they would. Commissioner Metz sought clarification regarding how carbon pricing would apply given the City's carbon-offset natural gas program. Assistant Director Abendschein explained that the existing offset program is a form of carbon pricing and that alternative approaches, including a carbon tax on natural gas consumption, could be evaluated through the modeling effort. It was emphasized that modeling such options would not necessarily indicate a recommendation to pursue them. Councilmember Burt asked how a parcel tax would function as a funding source for climate programs. Assistant Director Abendschein explained that a parcel tax would serve as a non-energy-related revenue source and suggested that staff provide information on climate program funding approaches used by other jurisdictions when the modeling results are presented. Councilmember Burt asked whether a carbon tax or parcel tax dedicated to climate programs would require voter approval. City Attorney Christopher Jensen confirmed that a two-thirds majority would be required. Councilmember Burt supported evaluating potential revenue sources but suggested using the annual resident survey to gauge community interest in funding options rather than commissioning separate polling. Assistant Director Abendschein indicated that staff has not yet reached that stage of the analysis and is first evaluating the need and potential appetite for additional revenue. Director of Public Works Brad Eggleston added that the timing aligns with development of the next survey and Assistant City Manager Nosé observed that the survey could provide useful feedback but would not offer the same level of statistical validity as ballot measure polling. Commissioner Scharff asked about EV adoption rates and the role of transportation electrification in achieving the City's emissions reduction goals. Assistant Director Abendschein reported that approximately 20 percent of Palo Alto residents have EVs and indicated that continued EV adoption will be necessary to achieve the City's climate targets. Building electrification alone would be unlikely to achieve the desired emissions reductions. Commissioner Scharff inquired about factors that drive EV adoption and tools available to encourage it. Assistant Director Abendschein cited charging availability, electric rates, and purchase incentives as key factors influencing adoption and noted that the City has fewer direct policy levers for EV adoption than for building electrification. Councilmember Burt observed that EV adoption continues to increase and cited market trends and State policy as factors supporting continued growth. Assistant Director Abendschein noted that the future impact of California's planned phaseout of new internal combustion engine (ICE) vehicle sales by 2035 remains uncertain due to ongoing legal challenges. City Attorney Jensen clarified that the requirement remains State law, although its enforceability is in question. Director Eggleston reported that EVs account for approximately 55 percent of new vehicle purchases in Palo Alto. Mayor Veenker observed that the high rate of EV purchases in Palo Alto reinforces the importance of expanding EV charging infrastructure and noted that lower-income communities may face greater barriers to EV adoption. SUMMARY MINUTES Page 5 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 Mayor Veenker asked how staff plans to account for uncertainty in future external funding sources when updating the modeling assumptions. Assistant Director Abendschein indicated that external funding is expected to represent a relatively small share of available revenues and emphasized that the model is being designed as a reusable tool that can be updated as assumptions and conditions change. Mayor Veenker observed that the proposed strategies involve numerous variables, including uncertainty regarding Bay Area Air Quality Management District regulations, and emphasized the importance of maintaining a flexible model that can be updated over time. Item 1 Public Comment 1. Mira J (Zoom): This commenter provided no audible public comment. 2. Stephen R. (Zoom) reported that background noise on the Zoom feed was making the meeting audio difficult to hear. Commissioner Croft emphasized the importance of maintaining affordable electric rates while advancing the City's electrification goals and asked whether gas transition programs could be incorporated into a COSA framework. City Attorney Jensen responded that the issue is legally complex and remains under review by the City Attorney's Office. Chair Mauter encouraged staff to identify clear and actionable model outputs that would help the UAC evaluate utility bill impacts and electrification outcomes. It was suggested to include metrics that illustrate how the relationship between electricity and natural gas prices may influence electrification decisions and emphasized the value of presenting information in a manner that supports policy evaluation and decision-making. Assistant Director Abendschein welcomed feedback regarding additional model outputs that would assist the Commission's review of utility bill impacts. Utilities Director Alan Kurotori noted that other utilities, including Sacramento Municipal Utilities District, track affordability and electrification metrics and that previous climate studies evaluated the effects of Palo Alto's electric rates on EV adoption. Chair Mauter observed that, while gasoline prices are outside the City's control, the City does influence gas and electric rates and must balance affordability considerations with its electrification goals. Vice Chair Phillips asked whether the modeling effort is focused primarily on 2030 or considers a longer time horizon and questioned whether new policies would have a significant impact on electrification and gas system transition outcomes in the near term. Assistant Director Abendschein explained that the study is intended to evaluate long-term strategies over multiple decades rather than focusing solely on the next 5 years. Near-term efforts will continue to focus on increasing adoption rates and building a critical mass of electrification that can support broader policy and regulatory approaches over time. Councilmember Burt observed that, despite significant progress and leadership in climate action, the City is unlikely to achieve its 80 percent emissions reduction goal by 2030. Consideration was suggested for revising the timeline while maintaining an ambitious trajectory and placing greater emphasis on the City's goal of achieving 100 percent carbon neutrality. Feedback was invited on those potential approaches. Commissioner Metz asked whether the proposed strategies account for the resources needed to expand programs such as the City's water heater replacement program if regional regulations significantly increase residential electrification activity. Assistant Director Abendschein explained that the modeling SUMMARY MINUTES Page 6 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 will incorporate assumptions regarding support programs under various regulatory scenarios, including technical assistance, incentives, and financing. Commissioner Metz emphasized the value of logistical support for residents and Assistant Director Abendschein noted that such assistance would entail costs. Mayor Veenker noted that support needs may vary among residents affected by future Air District regulations because proposed exemptions are based on factors such as income and project complexity. It was observed that some residents may require financial assistance while others may benefit more from technical or implementation support. Councilmember Lu supported establishing a realistic timeline for achieving the City's 80 x 30 emissions reduction goal and suggested including per-capita emissions reductions in the modeling analysis, particularly in the context of potential population growth and housing development. Assistant Director Abendschein noted that Palo Alto has achieved significant reductions in per-capita emissions and indicated that the metric could be included in the analysis. Councilmember Lu asked whether neighborhood- or block-level gas line decommissioning would be incorporated into the proposed modeling strategies. Assistant Director Abendschein explained that staff is monitoring and discussing such approaches but limited information regarding potential cost savings may make it difficult to fully incorporate them into the initial modeling effort. Councilmember Lu acknowledged the additional analytical complexity involved and indicated support for proceeding without that component if necessary. Councilmember Lu encouraged staff to consider factors beyond income when evaluating electrification strategies, noting that renters, homeowners, multifamily residents, small businesses, and other groups may face different barriers and support needs. Assistant Director Abendschein explained that staff has developed a more detailed understanding of resident income levels, housing types, and tenure status and is using that information to evaluate how different customer groups may be affected by electrification programs. It was noted that building type is a primary factor influencing electrification costs and program design. Director Kurotori added that staff is reviewing survey data and financing information from other CCAs and that the City has evaluated opportunities to coordinate electrification with gas main replacement projects, although that work is being pursued separately from the current modeling effort. Councilmember Lu confirmed his understanding that neighborhood-scale electrification remains a parallel effort rather than a component of the proposed strategies. Councilmember Lu asked whether the modeling framework could be used to evaluate the costs and implementation challenges associated with achieving specified natural gas decommissioning targets. Assistant Director Abendschein indicated that the model is expected to provide year-by-year information that could be used to identify potential friction points and evaluate different transition scenarios. Mayor Veenker conveyed that income alone may not fully capture affordability considerations and noted that the Air District incorporates housing cost burden into eligibility determinations for certain programs. Mayor Veenker reminded members that staff was primarily seeking feedback on the proposed 6 electrification strategies and encouraged comments regarding any concerns or suggested revisions to those alternatives. Commissioner Gupta expressed support for continuing to pursue the City's climate goals aggressively despite the likelihood that the 80 x 30 target will not be achieved by 2030. The importance of clearly SUMMARY MINUTES Page 7 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 communicating the financial impacts of electrification was emphasized and staff was encouraged to demonstrate how proposed strategies could affect utility costs and affordability for residents. Commissioner Gupta asked whether the modeling could account for potential stranded assets in the natural gas system, avoided gas system CapEx, and the effects of neighborhood-scale gas system decommissioning. Assistant Director Abendschein explained that staff has evaluated those issues at a high level and expects them to have some effect, although they are not currently viewed as determinative factors. Director Kurotori noted that the gas utility remains subject to federal safety and reliability requirements and that the City must continue maintaining the system while evaluating long- term transition scenarios. Staff is beginning to examine how zonal gas system reductions could affect future planning. Assistant Director Abendschein stated that staff is working to improve tracking and analysis of those impacts over time. Commissioner Gupta asked how the proposed strategies address the unique challenges renters face in electrifying their homes given that many electrification decisions are controlled by landlords. Assistant Director Abendschein noted that landlords would likewise be affected by potential Air District regulations and stated that staff will ensure the modeling considers impacts on renters and potential electrification options available to them. Commissioner Tucher expressed support for staff's overall approach and encouraged consideration of additional carbon-free energy resources, including grid-scale storage and distributed solar and storage systems. Commissioner Tucher questioned how grid modernization costs affect the proposed electrification scenarios. Assistant Director Abendschein explained that any grid capacity additions needed to support electrification must be incorporated into the overall cost analysis. Director Kurotori noted that the pace of electrification could affect the timing of grid modernization investments and associated funding needs and that staff is evaluating how to align infrastructure investments with adoption rates. Commissioner Tucher encouraged further analysis of what grid modernization investments would be required regardless of electrification because of their potential impact on utility rates. Commissioner Tucher encouraged staff to continue evaluating utility-scale and distributed battery storage, noting that rapidly declining storage costs may warrant updated analysis. Director Kurotori stated that staff will continue evaluating distributed storage and battery deployment options and report back to the UAC, noting that prior analyses found such approaches were not cost-effective but that the economics may change over time. Mayor Veenker noted that the City evaluated the condition of aging electric infrastructure before initiating the grid modernization program and recognized that some infrastructure replacement would have been necessary regardless. Mayor Veenker observed that a key consideration was the incremental cost associated with additional modernization efforts. Chair Mauter emphasized the importance of presenting the modeling results in a manner that is understandable to residents and businesses and encouraged staff to consider how the model could serve as a public communication tool. It was suggested to highlight clear, actionable metrics that help explain the relationship between proposed policies, decarbonization outcomes, affordability, and housing costs. Assistant Director Abendschein confirmed that the model is designed to provide that information. SUMMARY MINUTES Page 8 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 Chair Mauter expressed a preference for funding mechanisms tied to energy use rather than non- energy-related taxes and asked how the modeling accounts for ancillary benefits such as improved air quality and resiliency when evaluating and prioritizing investments. Assistant Director Abendschein explained that co-benefits are not directly incorporated into the model, which focuses on household costs, energy costs, and City funding needs. It was noted that cost-effectiveness is considered when designing scenarios and selecting measures. Chair Mauter encouraged staff to communicate how funding is allocated among different strategies and to highlight co-benefits alongside the modeling results to help residents understand the benefits of the proposed policies. Commissioner Scharff sought clarification regarding the baseline scenario. Assistant Director Abendschein confirmed that the baseline assumes implementation of existing State and Air District regulations but does not include additional Palo Alto-specific programs. Commissioner Scharff asked how income-qualified programs would account for renters, landlords, and other customer groups with differing levels of control over electrification decisions. Assistant Director Abendschein explained that staff has conducted extensive analysis of income-qualified households in Palo Alto, including housing tenure and building type, and has sufficient information to model those populations. It was noted that the income-qualified population is relatively small, making this a comparatively limited strategic option. Commissioner Scharff asked which local regulations are being considered as part of the proposed strategies. Assistant Director Abendschein reiterated Building Emissions Savings Ordinances (BESOs) and Building Performance Standards as the regulations most likely to drive electrification adoption. BESOs would promote electrification at the time of home sales, while Building Performance Standards would gradually reduce allowable energy use or emissions for larger commercial buildings. It was noted that smaller commercial buildings may be affected primarily through Air District regulations. Commissioner Scharff asked whether Strategy 6 would provide financial incentives to accelerate electrification. Assistant Director Abendschein explained that Strategy 6 builds on the comprehensive programs included in Strategy 5 by adding incentives for early retirement of gas appliances before the end of their useful lives. That approach would require additional funding but would help illustrate the level of effort and investment needed to achieve emissions reduction goals on a shorter timeline. Mayor Veenker noted that the proposed Air District regulations would be implemented in phases, with requirements for larger multifamily and commercial boilers taking effect later than those for smaller water heaters. Commissioner Croft asked whether the modeling could evaluate a more targeted approach that concentrates resources on a limited number of electrification strategies rather than pursuing multiple objectives simultaneously. Assistant Director Abendschein explained that a focused scenario could be modeled by concentrating efforts on a specific technology or adoption target and evaluating progress against that objective. Commissioner Croft emphasized the importance of establishing clear, achievable goals that can be communicated effectively to the public and build support through demonstrated success. Vice Chair Phillips stated that the proposed strategies appear to provide a reasonable range of policy options and asked staff to confirm the anticipated outputs of the modeling effort. Assistant Director Abendschein explained that the analysis will evaluate each strategy over the timeframe required to SUMMARY MINUTES Page 9 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 achieve the 80 percent emissions reduction goal, which may extend into the 2050s or 2060s for some scenarios. The primary outputs will include adoption rates, revenue needs, timelines, electric and gas rate impacts, and impacts on community member expenses. Vice Chair Phillips asked whether the analysis would include sensitivity testing for key assumptions such as future energy costs. Assistant Director Abendschein indicated that the modeling will likely include sensitivity analyses while relying on baseline assumptions for long-term rates. Vice Chair Phillips emphasized the importance of clearly communicating the results and highlighting differences from the baseline scenario. Mayor Veenker asked whether the modeling framework could be used to identify interim emissions reduction milestones and alternative targets if the City does not achieve its 80 x 30 goal. Assistant Director Abendschein explained that the model will provide year-by-year results that could be used to evaluate alternative emissions reduction targets and interim performance metrics. Mayor Veenker emphasized the value of establishing measurable goals that can be communicated to residents and businesses and used to demonstrate progress over time. Assistant Director Abendschein indicated that staff would explore opportunities to incorporate that feedback. Commissioner Gupta asked whether financing mechanisms such as tariffed on-bill financing or inclusive utility investment would be considered under the more ambitious electrification strategies. Assistant Director Abendschein indicated that such approaches remain under consideration and explained that the modeling will evaluate financing structures that recover costs over time through savings associated with electrification measures. It was noted that financing and similar funding mechanisms remain among the options being evaluated. Mayor Veenker expressed appreciation for the UAC's participation and thanked members and staff for their input and expertise. MOTION: NO ACTION TAKEN [Committee Members took a 13-minute break] 2. Recommendation to Approve Design Guidelines for a Public Agency EV Charging Hub Grant Program. CEQA Status; Under CEQA Guidelines Section 15183, Projects Consistent with an Existing General or Comprehensive Plan do not Require Additional CEQA Review Assistant Director for Climate Action Jonathan Abendschein presented a proposed Public Agency EV Charging Hub Grant Program intended to expand public charging access near multifamily housing. The program would provide partial funding for EV charging installations at eligible public agency sites, including City and Palo Alto Unified School District (PAUSD) properties, and could be leveraged with other grant opportunities. Proposed guidelines would require public access to charging, overnight charging at cost, and proximity to multifamily housing, with preference for sites near affordable housing. It was clarified that the guidelines do not require 24-hour public access and that language in the staff report suggesting otherwise was incorrect. Assistant Director Abendschein stated that the program could support more than 100 chargers across 5 to 10 sites and is intended to complement other multifamily charging strategies, including curbside charging, shared charging facilities, and charger installation within residential developments. It was reported that the working group supported focusing funding on public agency sites near multifamily housing, ensuring affordable overnight access, and providing adequate outreach and signage. Staff recommended that the CASC recommend City Council approval of the proposed program guidelines for a Public Agency EV Charging Hub Grant Program. SUMMARY MINUTES Page 10 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 Councilmember Burt asked about the status of the City's planned curbside EV charging pilot program and whether staff intends to begin pilot testing as soon as possible. Assistant Director Abendschein explained that the effort currently focuses on technical assistance, coordination with technology companies, and collaboration with other agencies. Staff hopes to structure pilot projects by fall 2026 with implementation anticipated in early 2027. It was noted that utilizing existing light poles is not expected to be a significant opportunity in Palo Alto because of limited available electrical capacity. Councilmember Lu sought clarification regarding the relationship between the proposed grant program and PAUSD's existing $2.8M MTC grant for EV charging infrastructure. Assistant Director Abendschein explained that PAUSD has secured the MTC grant but requires local matching funds to fully utilize it. The proposed City grant program could provide a portion of that match, helping advance EV charging hub projects at several PAUSD sites near multifamily housing. It was explained that PAUSD would prioritize deployment at 5 sites, including 4 sites aligned with the City's EV charging hub objectives, and could expand to additional locations if funding remains available. Any unused MTC grant funding could potentially support City sites, although staff expects the City's capacity to add additional locations would be limited. Councilmember Lu asked about overnight utilization of existing EV chargers in City garages and whether current usage patterns support the need for additional overnight charging infrastructure near multifamily housing. Assistant Director Abendschein stated that staff has some usage data but has not yet completed a comprehensive analysis. It was noted that existing City garage chargers experience some overnight use and that the proposed charging hub locations would generally be closer to multifamily housing. Councilmember Lu emphasized the importance of clearly defining the program's objectives and understanding how overnight charging goals relate to the proposed guidelines. Councilmember Lu sought clarification regarding the number and location of potential EV charging hub sites. Assistant Director Abendschein explained that staff has identified 4 PAUSD sites near multifamily housing that could be eligible for the program and has developed a preliminary list of 8 to 10 potential City sites that have not yet been prioritized. Current capacity assumptions would likely support implementation at the 4 PAUSD sites and 1 to 2 City sites. Councilmember Lu suggested that additional information regarding specific site locations be provided. Councilmember Burt observed that PAUSD's financial circumstances may have changed since it initially pursued the MTC grant and suggested that the City continue coordinating with PAUSD regarding its level of participation. Councilmember Burt noted that any additional opportunities for City involvement would depend on the availability of matching funds. Councilmember Burt observed that utilization of some existing public EV chargers near multifamily housing appears to be relatively low despite their proximity to residential units. It was suggested that additional outreach and promotion may be needed to increase awareness among residents, property owners, and property managers. Councilmember Burt emphasized that Caltrain sites may provide additional opportunities for EV charging. Councilmember Burt reported that a multifamily developer indicated EV charging is increasingly being installed in new developments because of tenant demand, suggesting that existing multifamily housing may present a greater challenge than new construction. SUMMARY MINUTES Page 11 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 Assistant Director Abendschein identified the 4 PAUSD sites currently under consideration as Addison, Hoover, Briones, and Ohlone Elementary Schools. Those sites are located near approximately 750 multifamily units, including about 250 affordable units. Mayor Veenker suggested that limited overnight charger utilization may reflect a lack of awareness regarding charger availability and overnight parking policies. Assistant Director Abendschein emphasized the importance of outreach and signage to increase awareness among nearby residents and improve visibility of available charging locations. Mayor Veenker noted that increasing confidence in the availability and convenience of EV charging could help encourage EV adoption. Mayor Veenker observed that future EV charging needs will depend on whether charger installation keeps pace with demand. Assistant Director Abendschein stated that retrofitting existing multifamily buildings is more challenging than providing charging in new construction and noted that nearby public charging hubs can help serve early EV adopters without requiring immediate building upgrades. Item 2 Public Comment: None. Mayor Veenker expressed support for the proposed program and described EV charging hubs on public agency properties as an effective use of public land. The importance of addressing site access and operational considerations at school locations was noted. Councilmember Lu questioned whether the proposed school sites represent the most effective locations for advancing the program's goal of serving multifamily residents and suggested that locations such as Ventura Community Center may provide greater benefit. Assistant Director Abendschein explained that staff's GIS analysis identified substantial numbers of multifamily and affordable housing units within ¼ mile walking distance of the proposed school sites and clarified that the grant program is not limited to the 4 PAUSD sites and could support City locations. Assistant Director Abendschein and Director of Public Works Brad Eggleston noted that the proposed school sites are among the locations most ready to proceed and that delays or additional uncertainty could jeopardize access to the $2.8M MTC grant. Councilmember Lu remained concerned that some of the proposed sites may not provide the highest level of benefit for nearby multifamily residents. Mayor Veenker suggested that if PAUSD elects not to pursue all 4 proposed sites, the City could focus on the sites staff considers most impactful and evaluate additional City locations for future participation. Assistant Director Abendschein identified Addison and Hoover as the strongest candidate sites and confirmed that other City sites could be considered if additional opportunities arise. Mayor Veenker emphasized the importance of determining PAUSD's level of participation as early as possible to avoid losing potential funding opportunities. Assistant Director Abendschein reported that PAUSD remains committed to pursuing the 4 proposed sites. Councilmember Burt suggested that future EV charging hub opportunities could include locations such as Alma Plaza, Ventura Community Center, and Winter Lodge. It was observed that Ventura Community Center and Winter Lodge are located near significant multifamily housing concentrations and may warrant consideration in future phases of the program. Councilmember Lu reiterated concern that the proposed school sites may not best advance the program's multifamily charging objectives and suggested prioritizing locations such as Ventura Community Center or other City-owned sites serving dense multifamily neighborhoods. Assistant SUMMARY MINUTES Page 12 of 12 Sp. Climate Action and Sustainability Committee and Utilities Advisory Commission Meeting Summary Minutes: 06/12/2026 Director Abendschein clarified that the primary constraint is the limited time available to utilize the MTC grant, rather than a lack of funding for additional sites, and explained that the proposed program could support school and City locations. It was stated that advancing additional City sites would require meeting accelerated implementation timelines and coordinating with PAUSD regarding use of the MTC grant. Councilmember Lu expressed support for moving forward with the program but emphasized the importance of prioritizing City-owned sites that provide the greatest benefit to multifamily residents. Councilmember Lu asked whether the guideline discouraging EV charging hubs within ¼ mile of existing City-owned charging infrastructure is intended to be applied strictly and expressed concern that it could limit future charging opportunities in areas such as Downtown. Assistant Director Abendschein explained that the guideline was intended to avoid duplicative investments in areas served by existing chargers and stated that staff had generally viewed the criterion as a strict eligibility standard. It was noted, however, that relaxing the requirement could make additional sites eligible and that staff had not fully evaluated the potential effects of such a change. Mayor Veenker suggested that the design guidelines could be revisited in the future if charger utilization increases. Assistant Director Abendschein agreed and Director Eggleston noted that future City charging hubs could be pursued through mechanisms other than the proposed grant program. Councilmember Lu stated that he was comfortable relying on future utilization data to determine whether additional charging hubs should be considered within the current ¼-mile spacing guideline. MOTION: Mayor Veenker moved, seconded by Councilmember Burt, to recommend the City Council approve the proposed Program Guidelines to authorize a Public Agency Electric Vehicle Charging Hub Grant Program (Attachment A). MOTION PASSED: 3-0 Future Meetings and Agendas Director of Public Works Brad Eggleston reported that the next CASC meeting is scheduled for August 7 and is expected to include a report from the 2025-2026 Youth Climate Advisory Board, a review of the 2025 Greenhouse Gas Inventory, and consideration of the Regional Water Quality Control Plant's Biosolids Facility Plan. Mayor Veenker noted that the meeting would occur before the first City Council meeting following the summer recess and the Committee expressed support for maintaining the proposed schedule. Adjournment: The meeting was adjourned at 4:53 p.m.